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The Tax Publishers Film Logic India (P) Ltd. v. ACIT [ITA No. 1007/Mum/2013, dt. 27-4-2016] : 2016 TaxPub(DT) 2209 (Mum-Trib) Business income or other sources *Facts:* Assessee in the business of film making and in providing technical services in connection with cine equipments, had sold story script on as is where is condition and claimed it as business income and claimed expenditure of directors salary, office overheads etc. The same was read as income from other sources on grounds that script writing is an intellectual property and nothing was brought on record by the assessee to demonstrate the fact that they wanted to pursue the business of movie/film making. This was also accepted by the Commissioner (Appeals). Aggrieved assessee went in further appeal: Held in favour of revenue that the income was income from other sources and only expenditure relevant to earn the income is allowable under section 57. On facts assessee has not brought anything on record to show that film making was attempted, talks with financiers were all on to pursue active business. The work of script writing was an intellectual property right in the hands of the one of the Director thus is income from other sources. Script writing does not feature in one of the objects including ancillary objects of the company.

The Tax Publishers

Film Logic India (P) Ltd. v. ACIT [ITA No. 1007/Mum/2013, dt. 27-4-2016] : 2016 TaxPub(DT) 2209 (Mum-Trib)

Business income or other sources

Facts:

Assessee in the business of film making and in providing technical services in connection with cine equipments, had sold story script on as is where is condition and claimed it as business income and claimed expenditure of directors salary, office overheads etc. The same was read as income from other sources on grounds that script writing is an intellectual property and nothing was brought on record by the assessee to demonstrate the fact that they wanted to pursue the business of movie/film making. This was also accepted by the Commissioner (Appeals). Aggrieved assessee went in further appeal:

Held in favour of revenue that the income was income from other sources and only expenditure relevant to earn the income is allowable under section 57. On facts assessee has not brought anything on record to show that film making was attempted, talks with financiers were all on to pursue active business. The work of script writing was an intellectual property right in the hands of the one of the Director thus is income from other sources. Script writing does not feature in one of the objects including ancillary objects of the company.